MDB Krishi Loan


MDB Krishi is a structured Loan product for agri SMEs and individual farmers. Agriculture is a potential growing sector of Bangladesh. There are a lot of emerging SMEs in 'agriculture which creates an ample opportunity of lending here and making profitability. To serve this sector MDB Krishi been designed.

Title Details
Target customers : All entrepreneurs- individual farmers and farm enterprises which fall under micro, cottage, small & medium enterprises, emerging corporates and other special organizations engaged in promoting the agriculture sector and its sub-sectors.
Objectives :

This product will meet up funding requirement of potential agri customers and contribute to achieve the following objectives.

  • Tap the loan market of the flourishing agri sector in a focused manner
  • Enhance productivity growth
  • Ensure food security
  • Reduce poverty
  • Reduce import dependence
  • Contribute to national GDP
  • Create more rural employment
  • Risk & portfolio diversification
  • Response to the call of State
  • Achieve bank's profitability
  • Branding of the bank
Agriculture sector and its sub-sectors, Agriculture and Rural Credit Programs :

Relevant sectors and sub-sectors of agriculture as per Bangladesh Bank SME Agri Credit Policy are as follows:

  • Crops (paddy, wheat, maize, oil seeds, spices etc)
  • Fisheries
  • Livestock & poultry
  • Agri equipment (loan given at users/farmers level)
  • Irrigation equipment (loan given at users/farmers level)
  • Seed production (for sales at farmers level)
  • Crops warehouse and marketing (only for storing and marketing of own crops)
  • Poverty alleviation and different income generating activates at rural areas

Lending priority should be given to these sectors & their related subĀ­ sectors also as per Agri Credit Policy of Bangladesh Bank. Women entrepreneurs are to be encouraged. Retail customers/marginal farmers/barga-farmers (individual or enterprise) engaged in agri activities and other income generating activities for alleviation of poverty may be financed through linkage of MFI NGOs under MDB NGO Link Loan Scheme.

Loan category :
  • MDB Krishi Loan (TL)
  • MDB Krishi Loan (RL)
Purpose of loan :

To foster development of agriculture sector with bank finance for working capital and fixed asset purchase including civil construction forshed/warehouse etc. Working capital may be extended in the form of RL and TL. While fixed assets/construction of shed/warehouse shall be financed in the form of TL. The loan will be utilized to meet up the following costs. Cost estimate to be certified by local agri officer/for cost estimate Bangladesh Bank policy (where necessary) may be followed:

  • For crops: Purchase of quality seeds, fertilizer & pesticide, labor payment, land processing cost, maintenance cost, payment of land rent, irrigation, warehousing & marketing, purchase of machinery & equipment etc.
  • For Fisheries: Expand ponds, hatchery, Purchase of renu pona, feed, medicine & related inputs
  • For livestock & Poultry: Purchase of cattle/poultry, feed, medicine & related inputs, expansion of shed, poultry cage/ hatchery etc.
  • Other cost as per estimate.
Eligibility criteria :
  • Tenure of business: Both the existing and startup businesses/farms as well as individual farmers having potentiality are eligible for the loan;
  • Nature of business: Agriculture;
  • Legal from of business: Proprietorship/partnership/private limited company/organizations having valid registrations/licenses;
  • Nationality: Bangladeshi by birth;
  • Entrepreneurs age: 21-60 years (applicable for sole proprietorship and partnership firms);
  • Owners/entrepreneurs experience: 2 years of experience in any kind of business. For startup business the entrepreneur/s should have practical experience/training in the relevant area'
  • Owners/enterprenuous capacity: To repay bank loan
Account turnover
: Bank account turnover will be encouraged.
: Loans under this product will be available across the country through MDB Krishi Loan various branches/sales outlets of MDB.
Eligibility for re-finance : Applicable as per Bangladesh Bank rule or agreement with any other re-financing or pre-financing agency/s.
Loan size
: Up to BDT 15.00 crore including working capital and fixed asset finance. Loan size may be extended based on business viability and repayment capacity of the borrower.

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